The global cryptocurrency market cap has sharply fallen to $977 billion, down 12% in one day. Bitcoin dropped over 10% to $24,760, with a notable decline in its dominance. Major cryptocurrencies like Ethereum and Binance also experienced significant price drops, spurred by investor fears about inflation and potential interest rate hikes, leading to a surge in trading volume.
In a dramatic turn of events, the global cryptocurrency market has plummeted below the $1 trillion threshold, settling at a staggering $977 billion, reflecting a 12% drop just within the last day. This massive sell-off has left nearly all leading digital assets in the red, with some experiencing declines of up to 17%. As reported by CoinMarketCap, the market’s tumult is palpable, echoing the fears felt among investors.
Bitcoin (BTC) has not escaped the turmoil, witnessing a decline of over 10% in a mere 24 hours, now priced at $24,760. The cryptocurrency’s dominance has also receded, slightly falling to 47.25%. Over the past week, Bitcoin has suffered a significant drop of 20.86%, emphasizing the market’s instability.
The surge in trading volume is reflective of this bearish sentiment, with the total cryptocurrency market volume escalating by 27% to reach $110 billion. A noteworthy chunk of this is attributed to DeFi, accounting for $8.66 billion, while stable coins dominated with an impressive volume of $97.88 billion.
The alarming decline in the crypto market can be traced to a recent wave of selling, beginning over the weekend with Bitcoin dipping to the $24,000 mark. “The crypto Fear and Greed Index still showed a sentiment of ‘extreme fear’; this indicated that most investors were still extremely bearish,” stated Darshan Bathija, CEO and Co-Founder of Vauld. Investors are anxiously awaiting the upcoming U.S. Federal Open Market Committee meeting, as inflation metrics raise concerns about potential interest hikes.
Ethereum (ETH) has also felt the brunt of the market’s dip, with its price plummeting by 13% to $1,277. Over the past week, ETH’s decline has been even sharper, totaling a significant 33%. Meanwhile, Binance (BNB) suffered a 10% drop, now valued at $232, representing a 25% decrease over the last week.
Other cryptocurrencies, too, have been ensnared by this downward spiral. XRP is down 8% to $0.3214, while Solana (SOL) fell by approximately 16% to $27. Cardano (ADA) and the popular memecoin Dogecoin (DOGE) also recorded substantial decreases, with ADA dropping to $0.4504 and DOGE falling to $0.05694.
In lighter terms, it seems like a storm swept through the crypto landscape, leaving wreckage in its wake. Polkadot (DOT) dropped to $6.75, a 12% decrease, while Avalanche (AVAX) crashed by 17% to $15.6. The severe downturn paints a vivid picture of a market gripped by uncertainty, compelling investors to tread carefully amid these drastic shifts in valuation.
The cryptocurrency market has been on a volatile ride, frequently swinging between peaks and valleys that create both opportunities and risks for investors. As economic factors, such as inflation and interest rates, exert pressure on the digital asset space, market participants remain on high alert for signs of recovery or further decline. The recent crash underscores the fragility of cryptocurrencies and the influence of investor sentiment, highlighted by tools like the Fear and Greed Index.
In conclusion, the recent crypto crash has sent shockwaves through the market, with the total cap plunging significantly and top cryptocurrencies experiencing steep declines. Investor fear is palpable as they await critical economic announcements. Many digital assets, from Bitcoin to Ethereum, are struggling to maintain value, reflecting broader concerns about market stability amid economic pressures. Investors are urged to remain cautious and informed during these tumultuous times.
Original Source: www.financialexpress.com
